Ocwen Financial (NYSE:OCN) and Ditech (NYSE:DHCP) are both small-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, profitability, analyst recommendations, earnings and risk.
This table compares Ocwen Financial and Ditech’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of recent ratings and recommmendations for Ocwen Financial and Ditech, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Ocwen Financial currently has a consensus target price of $4.00, suggesting a potential upside of 99.00%. Given Ocwen Financial’s higher probable upside, research analysts plainly believe Ocwen Financial is more favorable than Ditech.
Earnings & Valuation
This table compares Ocwen Financial and Ditech’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Ocwen Financial||$1.19 billion||0.23||-$127.96 million||N/A||N/A|
|Ditech||$831.26 million||0.00||-$426.89 million||N/A||N/A|
Ocwen Financial has higher revenue and earnings than Ditech.
Institutional and Insider Ownership
57.8% of Ocwen Financial shares are owned by institutional investors. Comparatively, 39.3% of Ditech shares are owned by institutional investors. 0.7% of Ocwen Financial shares are owned by insiders. Comparatively, 32.0% of Ditech shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Ocwen Financial beats Ditech on 5 of the 9 factors compared between the two stocks.
About Ocwen Financial
Ocwen Financial Corporation, a financial services holding company, originates and services loans in the United States, the United States Virgin Islands, India, and Philippines. Its Servicing segment provides residential and commercial mortgage loan servicing, special servicing, and asset management services to owners of mortgage loans and foreclosed real estate. This segment's residential servicing portfolio includes conventional, government insured, and non-agency loans. The company's Lending segment originates and purchases conventional and government-insured residential forward and reverse mortgage loans primarily through its correspondent lending arrangements, broker relationships, and directly with mortgage customers. The company also provides short-term inventory-secured loans to independent used car dealers to finance their inventory. Ocwen Financial Corporation was founded in 1988 and is headquartered in West Palm Beach, Florida.
Ditech Holding Corporation operates as an independent servicer and originator of mortgage loans, and servicer of reverse mortgage loans. The company operates through three segments: Servicing, Originations, and Reverse Mortgage. The Servicing segment performs servicing for mortgage loan portfolio, on behalf of third-party credit owners of mortgage loans, as well as performs subservicing for third-party owners. This segment also operates complementary businesses, including asset receivables management that performs collections of post charge-off deficiency balances for third parties; and holds the assets and mortgage-backed debt of the Residual Trusts. The Originations segment originates and purchases mortgage loans through consumer originations, and correspondents and wholesale lendings. The Reverse Mortgage segment primarily focuses on the servicing of its own reverse loans and subservicing on behalf of third-party credit owners of reverse loans. This segment also provides complementary services for the reverse mortgage market, such as real estate owned property management and disposition. It serves government-sponsored entities, government agencies, third-party securitization trusts, and other credit owners. The company was formerly known as Walter Investment Management Corp. and changed its name to Ditech Holding Corporation in February 2018. Ditech Holding Corporation was founded in 1958 and is based in Fort Washington, Pennsylvania.
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